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The following figure shows two aggregate production functions.Refer to the figure above. Which of ...

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The following figure shows two aggregate production functions.Refer to the figure above. Which of ...

The following figure shows two aggregate production functions.

Refer to the figure above. Which of the following best describes the difference between aggregate production functions 1 and 2?

▸ The returns for increases in physical capital stock are higher in function 1.

▸ Physical capital stock is higher for function 1.

▸ Human capital is higher for function 1.

▸ Better technology is employed in function 1.

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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